Prepayment penalties

[dzeis]

What is the name of your state? California
What are the maximum amounts that a lender can charge a borrower on prepayment penalties?

 

[MortgageGuru]

Typical pre-payment penalties are 6 months worth of interest payments. I do not believe there is an actual maximum. Could be wrong though.

 

[dzeis]

dzeis

Is the interest based on the current balance or the original loan amount?

 

[HomeGuru]

Is the interest based on the current balance or the original loan amount?

**A: what exactly does your mortgage note state as the method of calculation of a prepay?

 

[Ciarraine]

Typical pre-payment penalties are 6 months worth of interest payments. I do not believe there is an actual maximum. Could be wrong though.

Depends on your state law. 6 months is typical, some states disallow them entirely, others have lower maximums or restrictions on them if the interest rate is considered to be high. Your answer is probably in this:
http://www.dfi.ca.gov/lawsreg/2004financialcode.pdf